If the price elasticity of demand is less than 1, then consumer demand is
A) unrelated to the elasticity of demand.
B) inelastic.
C) elastic.
D) unitary elastic.
B
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Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco?
A) high price B) low price C) There is no best strategy. D) Not enough information is given to determine the best strategy.
A firm that has relatively high fixed-cost expenditures is likely to be a natural monopoly
Indicate whether the statement is true or false
Low Bar Steel factory produces runoff that affects the water supply in one way or another for more than 100,000 households and businesses. Why would it be impractical for the Coase theorem to apply to a workable solution in this case?
a. Potential benefits outweigh the costs. b. There is no externality. c. There are too many transactors. d. Property rights are clearly defined.
A monopolist faces
A. a two-tiered demand curve. B. the market demand curve. C. a perfectly inelastic demand curve. D. a perfectly elastic demand curve.